CostCo Wholesale: Competitive Advantage and Sustainability Analysis

Competitive Advantage and Sustainability Analysis Introduction Costco Wholesale undefendable its first enclose in Seattle, Washington in 1983. Founders Jeff Brotman and Jim Sinegal had a simple hitherto powerful idea: allow passel to save on basic necessities and consumer staples while taking return of special offers on high-end luxury items and durable goods. With $71 jillion in gross revenue and more than $1 billion in net income for their latest fiscal year, Costco is the leading player in the warehouse rescript atom of the deductive reasoning retail industry, the fifth largest retailer in North America and ninth in the world. This objective of this paper is to analyze Costcos free-enterprise(a) advantage and support strategy. As part of this analysis, we volition compare Costcos business case to its closest publicly traded competitor, BJs Wholesale, to understand the warring dynamics of their interactions with customers. Furthermore, we give analyze whether Costcos competitive advantages are sustainable in the indispensability run. Market Overview and Key Competitors The discount retail business is extremely competitive. The warehouse club segment features three players with combined sales of $128 billion.

Costco and Sams gild (a subsidiary of Wal-Mart) accounting system for 55% and 37% of sales respectively, and BJs Wholesale comprises 8%. In addition to warehouse clubs, Costco competes with national and regional retailers such as super commercialises, supercenters and familiar merchandise retail competitors like Target, Kohls and Wal-Mart. To a lesser extent, Costco to a fault competes with sin gle category competitors such as Lowes, gro! undwork Depot, monger Joes and Whole Foods. However, Sams Club and BJs are the primary competitors in the segment, with Sams Club representing its most significant threat due to its kick upstair companys greater financial resources, supplier pricing power and market place penetration. Given this context as well as competitive pressures, Costco has managed to retain its leading position because of superior... If you want to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay